Posted 11/25/2023, 7:04:12 PM
India-China Trade Gap Widens to $15 Billion Amid Suspected Import Under-invoicing
- Trade discrepancy between India-China trade data rose to $15 billion in Jan-Oct 2023, up over 20% from last year
- Under-invoicing of imports by Indian importers leads to lower import tax collection
- Difference could be partly due to different valuation methods - FOB (India) vs CIF (China)
- Unexplained difference of 5% could be under-invoicing to avoid taxes, causing revenue loss
- Specific products like fruits, nuts, sugar, cereals & vehicles identified as high-risk for under-invoicing